Sector study food processing Bangladesh

Requesting party:

RVO

Content of the study

In the sector study, Q-Point has mapped out the food processing sector of shrimps and fruits and vegetables in Bangladesh. The main stakeholders, trends, problems, challenges and (business) opportunities have been analysed. The outcome contains relevant issues for Dutch agribusiness to lift the food processing sector of Bangladesh to a higher level by means of investments, knowledge and technology. In addition, the study has provided further insight and pave the way for actions by the supervisory, facilitating and regulatory bodies involved and important chain parties.

Growing food processing sector

For the past five years, the global food processing industry has been one of the best performing industries. This makes the industry attractive to investors from all over the world. Although Bangladesh is a relatively small player worldwide, the food processing sector has changed from a few small-scale family businesses to a modern, partly automated sector. This sector consists of professional family businesses, small and medium-sized businesses and multinationals.

Support aid-to-trade

Dutch companies are sometimes reluctant to do business in several sectors in Bangladesh, including the food processing sector. As the Netherlands is gradually phasing out aid to Bangladesh, there is a growing need to support the aid-to-trade transition. Reliable information for Dutch companies about the Bangladeshi market potential, however, remained largely unknown.

Bangladesh is a developing country, which means that the average income is growing and therefore, with a growing population, the market for processed food is increasing. Besides the growing market, the business environment has improved.

Development Dutch involvement: identified opportunities

With valuable information, the way can be cleared for Dutch companies to be active in the Bangladeshi markets. This sector study, therefore, aimed to further develop the Dutch involvement in the food processing sector in Bangladesh.

The four most important identified opportunities for cooperation between Dutch and Bangladeshi companies are:

Access to up-to-date technologies in production and processing of shrimps as well as in the fruit and vegetable sector while at the same time dealing with climate smart sector solutions.
By implementation of agricultural hubs close to the farmers, food safety and quality issues arising from transportation conditions will be resolved and coupled with shortening value chains, can ensure a better product.
Capacity building for knowledge on quality management to improve food safety and quality.
Capacity building in relation to value additions processes and production/ processing issues to tackle the problem of lack of skilled labour.